MGM Resorts May Make 63,000 Furloughs Permanent LayoffsCompany Cited Decreased Travel And Tourism As Main Reason For Possible Change |
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Furloughs could become permanent layoffs as some casino companies are realizing that the COVID-19 pandemic could have effects that reach further than just the length of the shutdown.
According to a Las Vegas Review-Journal Report, MGM Resorts sent a legal notice to employees that those furloughs could “last more than six months or become permanent.” Acting CEO Bill Hornbuckle sent the letter and cited a possible decline in travel and tourism as the reason for the possible permanency of the furloughs.
Earlier this week, MGM laid off four Las Vegas Strip hotel presidents and delegated those responsibilities to the presidents of the remaining Strip properties. It has also been reported that when gaming gets approval from the state to reopen, MGM won’t reopen all of its properties at once.
Instead, Nevada’s largest employer will likely open a handful of casinos and gradually reopen the rest as it is proved that casino resorts can operate while keeping guests safe.
Station Casinos will implement that exact plan in Nevada by keeping Palms, Fiesta Henderson, Fiesta Rancho and Texas Station casinos closed initially. CEO Frank Fertitta also announced that the company would be laying off a “significant but unspecified number of employees.”
Shortly after Nevada Gov. Steve Sisolak declared a state of emergency and shut down all ‘nonessential’ businesses on March 17, MGM furloughed 63,000 workers. The company employs 70,000 domestic workers in total with its nine casino properties on the Las Vegas Strip, two in Mississippi, as well as one in Atlantic City, Detroit, Maryland, Ohio, Massachusetts and New York.
Furloughed workers were originally eligible to receive benefits from the company’s health plan through June 30. In response to the news, MGM has extended that deadline through August 31.
There is still no definitive timeline for when Nevada casinos will open their doors again.
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